Insurer AIG seals deal for £46bn rescue by taxpayer

Insurance giant American International Group has completed the deal under which it is getting an $85 billion (£45.9 billion) injection of US taxpayers' money.

The agreement provides the emergency loan for two years at an interest rate of about 11.5%. The US government could also take an 80% stake in the company.

AIG says it will repay the money in full with proceeds from the sales of some of its assets, with a list of those for sale due next week.

Chief executive Edward Liddy said the facility was "the company's best alternative", and AIG is "already developing a plan to sell assets, repay the facility and emerge as a smaller but profitable company".